Where Will UPS Be in 1 Year?
The Motley Fool
by newsfeedback@fool.com (Lee Samaha)February 19, 2026
AI-Generated Deep Dive Summary
When considering where United Parcel Service (UPS) might stand in one year, the focus is on whether the stock will yield a strong return if purchased now and sold by 2026. Management envisions UPS emerging as a leaner, more efficient company by successfully reducing reliance on less profitable Amazon deliveries while expanding in higher-margin sectors like small and medium-sized businesses (SMBs) and healthcare. The company aims to achieve significant cost savings through productivity improvements, including investing in smart technology and increasing the percentage of U.S. delivery volumes handled by automated facilities from 66.5% at the end of 2025 to 68% by the end of 2026. This strategic "glide down" involves closing underperforming facilities and implementing automation to enhance efficiency.
In 2025, UPS closed 93 buildings and deployed automation in 57 others. The company plans to continue this trend in 2026 by closing an additional 24 buildings and reducing its workforce by 30,000 positions. These moves are part of a broader effort to streamline operations and cut costs, aligning with the goal of becoming a more productive and profitable enterprise. By focusing on automation and targeted market growth, UPS aims to position itself for long-term success despite the risks and uncertainties associated with executing such a large-scale transformation.
For investors, understanding UPS's future trajectory is crucial. The company’s ability to
Verticals
financeinvesting
Originally published on The Motley Fool on 2/19/2026